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Destruction and Deflection: Evidence from American Antidumping Actions against China

Cheng, L; Mi, Z; Coffman, D; Meng, J; Chang, D; (2021) Destruction and Deflection: Evidence from American Antidumping Actions against China. Structural Change and Economic Dynamics , 57 pp. 203-213. 10.1016/j.strueco.2021.03.009. Green open access

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Abstract

With a decrease in tariffs around the world, antidumping duties, as an important part of temporary trade barriers, have increased dramatically to take their place. China and the United States (US) are the two heaviest targets and users of antidumping investigations respectively. In this paper, using Chinese annual transaction-level export data from 2000 to 2017, we study trade destruction effect and trade deflection effect of all antidumping investigations initiated by the US against China. We find strong evidence of both destruction and deflection effects. American antidumping actions reduce China's exports to the US, while increasing exports to non-US countries. Critically, trade destruction and deflection effects are long-lived, and industry indicators (including industry employment, industry concentration and capital intensity) play significant roles in deflecting trade. In general, the impact of antidumping actions could be greater than what the direct effect alone might suggest.

Type: Article
Title: Destruction and Deflection: Evidence from American Antidumping Actions against China
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.strueco.2021.03.009
Publisher version: https://doi.org/10.1016/j.strueco.2021.03.009
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions.
Keywords: Antidumping, Trade Destruction Effect, Trade Deflection Effect
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt
URI: https://discovery.ucl.ac.uk/id/eprint/10125247
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